Bridging Loans in Singapore: Funding a New Launch Before Your HDB Sale Completes

A bridging loan in Singapore solves a timing problem that almost every HDB upgrader runs into. You have found the condo you want and agreed to sell your flat, but the money from the sale won’t arrive for weeks. Meanwhile, the developer wants the down payment and IRAS wants stamp duty. A bridging loan covers that gap for a short period, then gets repaid from your sale proceeds.

This guide explains how bridging loans work, when a new launch buyer actually needs one, and what to check before signing. We use LinkTown Residences (also searched as Hougang Central Residences) as the example, with illustrative figures only.

What a bridging loan is, and isn’t

MAS defines a bridging loan as a credit facility for the purchase of a property, pending the receipt of sale proceeds from another property the borrower owns or co-owns. That definition tells you three things:

• It is tied to a sale. Banks generally want evidence that your current home is sold, such as an exercised Option to Purchase (OTP).
• It is temporary. It is repaid when your sale proceeds arrive, typically within months.
• It is separate from your home loan. Your main mortgage funds the rest of the purchase over its full tenure. The bridging loan only covers the down payment gap.

Common features, according to bank and comparison-site descriptions, are a tenure of up to about six months, a loan amount linked to the cash and CPF you expect back from your sale, and interest paid in cash during the loan. Interest rates on bridging loans tend to be higher than on home loans. We don’t quote rates here, because they vary by bank and change often.

Why HDB upgraders hit a cash gap

The gap comes from two rules meeting each other.

First, ABSD. Singapore Citizens pay 20% ABSD on a second residential property. IRAS’s FAQ says that if you have contracted to sell your only home before you accept the OTP for the next one, no ABSD is payable. So many upgraders sell first: their buyer exercises the OTP on the flat, then they book the condo.

Second, HDB completion time. An HDB resale doesn’t complete when the OTP is exercised. HDB says it takes about eight weeks from its acceptance of the resale application to complete the transaction, and the resale application itself comes after the OTP. Your cash proceeds and CPF refund arrive only at completion.

Meanwhile, a new launch runs on its own clock. You pay 5% in cash at booking, then 15% when you sign the Sale and Purchase Agreement, usually about eight weeks later, and Buyer’s Stamp Duty within 14 days of signing. If your flat sale completes after these dates, you need another source of funds.

A worked example

Illustration only. A couple sells a 5-room Hougang flat and books a 2-bedroom at LinkTown Residences at an estimated S$1,695,000 (678 sq ft at S$2,500 psf; not an official price).

Suppose the couple has S$120,000 in cash savings and limited CPF left in their accounts, and their flat sale is expected to return a sizeable sum in cash and CPF, but only a few weeks after the S&P payment is due. The shortfall between what they can pay now and what they owe is the bridging amount. Once the flat sale completes, the proceeds repay the loan.

Hougang 5-room flats had a median resale price of about S$830,000 in January to November 2025, but what matters is your net proceeds after the outstanding loan and CPF refund. Our HDB upgrader guide walks through that calculation, and our CPF guide explains how refunded CPF can be used for the new purchase.

A sell-first timeline with a bridging loan

The progressive payment scheme helps here: after the first 20%, the remaining 80% is paid in stages over several years, so the bridging need is concentrated in the first few weeks.

Risks to think about

• The sale falls through or is delayed. If your HDB transaction is held up, you may be carrying a short-term loan longer than planned. Ask the bank what happens if completion slips.
• Lower proceeds than expected. If your net proceeds are smaller than you assumed, you may need to find cash to repay the loan.
• Interest cost. Even a few months of interest adds up, and it is usually paid in cash.
• Your home loan limits. Bridging finance doesn’t change TDSR or LTV on your main loan. Check those first with our home loan guide and the loan calculator.
• Getting the order wrong. If you accept the condo OTP before your flat buyer has exercised theirs, ABSD at 20% applies. Married couples can reclaim it only by selling within the IRAS time limit; see our guide to ABSD remission for married couples.

Alternatives to a bridging loan

• Use savings or CPF already in your accounts for the 15% and BSD, if you have enough.
• Buy first, sell later. You keep living in your flat, pay ABSD upfront and claim the refund later if eligible. This needs a lot of cash, but no bridging.
• Time your booking so that your flat sale completes closer to the S&P date. With a launch, you can’t fully control this, but a realistic HDB timeline helps.
• Consider a Deferred Payment Scheme if the developer offers one. Availability for LinkTown Residences is not known.

Bridging loan Singapore checklist

1. Confirm your flat’s MOP and your net sale proceeds (cash and CPF).
2. List every payment due in the first ten weeks: 5%, 15%, BSD, legal fees.
3. Ask your bank about bridging eligibility, maximum amount, tenure, fees and interest.
4. Check what documents the bank needs, typically both OTPs.
5. Build a buffer in case HDB completion takes longer.

General information only. Bridging loan terms, including tenure, amount, eligibility and interest, are set by each bank; ABSD, CPF and HDB rules are as published by IRAS, CPF Board and HDB. Verify with IRAS, CPF, HDB and your bank. Figures are illustrative; LinkTown Residences prices are not announced. Information as at Sep 2026. Published by an independent licensed salesperson, not the developer.